Since the seventh of the present month, crude is moving in a sideway range since yesterday and will not return to close below 89.05 the four hour interval, therefore, the bearish direction today requires a base built around 90.00 - 90.50 within the four hour closing as a start, then return to breach 89.05 within the four hour interval as well. In case these negative closings prevail, we will witness a bearish trend dominating intraday trading, due to the effect of the suggested signs according to the Elliott theory and overbought signals appearing on stochastic.
The trading range for today is among the key support around 87.35 and the key resistance around 92.10.
The short term trend is expected sideways as long as trading is between 90.50 and 70.00 with weekly closings.
|Recommendation||Based on the charts and explanations above our opinion is selling crude around 89.05 targeting 87.75 and stop loss above 90.50, might be appropriate.|